When even the luxury segment goes into crisis: the latest news
When we refer to the luxury segment, we can think of everything, except for one word: crisis. It is known, the main investors who interface with this reality, seem to never have critical moments, considering the type of target itself.
And yet, reality does not always correspond to the collective imagination.
According to the latest report from Prime Global Cities, which deals with tracking the flow of residential luxury market prices in around 46 countries, from last year until June 2019, prices have risen exponentially in the luxury market, making a stall in the same sector.
Among the various cities examined, Berlin is in the lead, with a higher annual growth rate than ever, followed by Frankfurt, which, however, always maintains competitive prices in line with the European average. The top 35 cities in the ranking reported 78% price growth compared to previous years. Among the remaining ones, instead, they show a decline, including Istanbul (-9%) and Vancouver (-13%).
There are six European cities that dominate the top ten. Among these we must mention Paris and Madrid, which are following a similar trend, precisely 5 and 5.2 percentage points. The variations present are given by the presence of different realities in the various districts.
In detail :
In Madrid, areas like Chamberí and secondary districts, truly surprising results are emerging. In Paris, the Rive Gauche, in particular the 6th and 7th arrondissements, are going through a standstill in order to recover, after witnessing an 11% increase in prices starting in 2017.
In China instead, the main city that opens the ranking is Beijing, with 4.5 percentage points more than last year. Immediately next is Guangzhou (2.7%) with an optimism in the really rampant real estate.
Hong Kong, despite the adoption of new infrastructure projects, including at a cross-border level, does not appear to have undergone any real growth in terms of prices. This is probably due to the current political instability that holds back, not a little, the real estate of luxury.
Even Singapore is not able to emerge as it would like and could, even if, in recent months, a large number of purchase and sale contracts have been signed. But not enough to be worthy of mention.
In summary, the situation seems to be very varied but at the same time unstable. Some areas, despite having the possibility of imposing higher prices, struggle to find a convincing demand, probably due to a feeling of low confidence in the real estate market. In other circumstances, however, it is precisely the lack of such strong elements, such as the presence of focal points for investors, that lead them to change course.
And yet, reality does not always correspond to the collective imagination.
According to the latest report from Prime Global Cities, which deals with tracking the flow of residential luxury market prices in around 46 countries, from last year until June 2019, prices have risen exponentially in the luxury market, making a stall in the same sector.
Among the various cities examined, Berlin is in the lead, with a higher annual growth rate than ever, followed by Frankfurt, which, however, always maintains competitive prices in line with the European average. The top 35 cities in the ranking reported 78% price growth compared to previous years. Among the remaining ones, instead, they show a decline, including Istanbul (-9%) and Vancouver (-13%).
There are six European cities that dominate the top ten. Among these we must mention Paris and Madrid, which are following a similar trend, precisely 5 and 5.2 percentage points. The variations present are given by the presence of different realities in the various districts.
In detail :
In Madrid, areas like Chamberí and secondary districts, truly surprising results are emerging. In Paris, the Rive Gauche, in particular the 6th and 7th arrondissements, are going through a standstill in order to recover, after witnessing an 11% increase in prices starting in 2017.
In China instead, the main city that opens the ranking is Beijing, with 4.5 percentage points more than last year. Immediately next is Guangzhou (2.7%) with an optimism in the really rampant real estate.
Hong Kong, despite the adoption of new infrastructure projects, including at a cross-border level, does not appear to have undergone any real growth in terms of prices. This is probably due to the current political instability that holds back, not a little, the real estate of luxury.
Even Singapore is not able to emerge as it would like and could, even if, in recent months, a large number of purchase and sale contracts have been signed. But not enough to be worthy of mention.
In summary, the situation seems to be very varied but at the same time unstable. Some areas, despite having the possibility of imposing higher prices, struggle to find a convincing demand, probably due to a feeling of low confidence in the real estate market. In other circumstances, however, it is precisely the lack of such strong elements, such as the presence of focal points for investors, that lead them to change course.
